Cash for Work: Interior Minister Tito's Breakthrough to Accelerate Disaster Recovery in Sumatra
The central government is driving accelerated recovery of disaster-affected areas in Sumatra through a cash for work scheme, known locally as padat karya tunai. The programme was initiated by Interior Minister Tito Karnavian as a strategic approach to ensure post-disaster rehabilitation and reconstruction proceeds rapidly whilst stimulating the economy of affected communities.
Interior Minister Tito, who also heads the Task Force for Accelerated Rehabilitation and Reconstruction (Satgas PRR) following the Sumatra disaster, presented the cash for work scheme at the Interior Ministry office in Jakarta on Wednesday, 11 February 2026. “Yesterday I met with prominent religious scholars in Aceh. Their suggestion was mutual cooperation, or cash for work as they termed it,” stated Tito.
The cash for work scheme enables local residents to participate directly in recovery activities such as debris and mud clearance, repair of public facilities, and restoration of environments damaged by disaster. Through this mechanism, affected residents are not merely recipients of aid but also earn income from the work they undertake in recovering their areas.
From a policy perspective, the cash for work scheme is indirectly outlined in Interior Ministry Circular Number 900.1.3/1084/SJ regarding the Adjustment of Transfers to Regions for the 2026 Budget Year for Disaster-Affected Areas in Aceh, North Sumatra, and West Sumatra provinces, issued on 2 March 2026. The circular contains provisions for post-disaster budgetary allocations assigned to rehabilitation activities in affected areas, including environmental improvement in disaster zones, repair of public infrastructure and facilities, assistance for household repairs, psychosocial recovery, healthcare services, conflict reconciliation and resolution, social, economic and cultural recovery, security and order restoration, restoration of government functions, and public service delivery.
The cash for work scheme can also be applied to reconstruction activities in disaster-affected areas, including mud clearance through mutual cooperation arrangements; reconstruction of infrastructure and facilities including social facilities; revitalisation of communities’ social and cultural life; implementation of appropriate design and use of improved and disaster-resilient equipment; participation and involvement of community organisations, business entities, and residents; improvement of social, economic and cultural conditions; strengthening public service functions; and enhancement of primary services to communities.
According to Tito Karnavian, the cash for work approach serves as a solution to accelerate recovery whilst preserving purchasing power of disaster-affected communities. By directly engaging residents, local government can move more rapidly to restore damaged environments without awaiting completion of entire procurement processes.
Beyond expediting disaster impact response, the cash for work scheme is expected to alleviate the economic pressure that typically emerges following disasters. Many residents lose livelihoods because land, business premises, or economic facilities are damaged. Through this labour-intensive programme, communities can recommence earning income whilst restoring their living environments.
The central government has supported the programme through adjustments to Regional Financial Transfers (TKD) to ensure local governments possess sufficient fiscal space to accelerate rehabilitation and reconstruction. Interior Minister Tito announced that President Prabowo approved the 2026 Regional Financial Transfers for Aceh, North Sumatra, and West Sumatra without reduction, restored to equivalence with 2025 transfers following efficiency measures, valued at Rp 10.6 trillion. Additional 2026 transfers comprise Rp 1.65 trillion for Aceh, Rp 6.35 trillion for North Sumatra, and Rp 2.63 trillion for West Sumatra.
The central government considers collaboration between local government, communities, and various stakeholders as the key to successful acceleration of post-disaster recovery. Through an approach directly engaging residents and supported by adequate budgetary provisions, rehabilitation processes in affected areas are expected to progress more rapidly, effectively, and beneficially for local communities.
The cash for work scheme represents a government breakthrough in ensuring recovery of Sumatra’s disaster-affected areas focuses not solely on infrastructure development but also on restoration of communities’ social and economic life. Through this measure, the government hopes that the process of recovery from disaster can proceed more swiftly and sustainably.